Florida homeowners continue to grapple with an insurance crisis, with rising premiums and limited options.
According to the Insurance Information Institute, the average insurance premium for homeowners in Florida has spiked by 42% year-over-year, to an average of $6,000 in 2023.
At least a dozen insurance companies have stopped issuing new policies in Florida since January 2022 and three companies have announced their intentions to withdraw from the state in the past year, according to the Institute.
In an attempt to stabilize the market, state lawmakers recently passed a series of reforms, some of which are already in effect.
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Last week, Florida regulators ordered Citizens Property Insurance, the state-backed insurer, to reconsider a proposed 12% rate hike for some homeowners.
Officials from Citizens say this is necessary after dealing with a massive growth in recent years with over 1.3 million polices.
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Citizens has 30 days to submit a revised rate proposal. A spokesperson with Citizens said they're "reviewing the order and will submit a revised set of recommendations."
Dulce Suarez-Resnick, Vice President of Sales at Acentria Insurance, weighed in on the situation.
"There is an availability and an affordability issue," Suarez-Resnick said. "We do not have enough companies writing right now."
She attributes Florida's fluctuating insurance rates to several factors including insurance fraud and major storms in recent years.
Despite this, Suarez-Resnick sees a silver lining.
"The good news is that there are at least three or four companies that have applied to do business in the state of Florida next year," she said.
Earlier this week, the Florida Office of Insurance Regulation (OIR) approved two Indiana-based property and casualty insurance companies to write policies in Florida.
According to a news release from OIR, a total of four companies have been approved after lawmakers passed a series of insurance reforms.
Suarez-Resnick encourages homeowners to take these proactive steps:
- First, call your insurance agent to talk about your policy.
- Ask if you're missing out on any discounts or credits.
- Check if you can make any changes to lower your insurance cost right now.
- Review your current policy to see if you have extra coverages you no longer need.
Further changes are coming for Citizens' policyholders. Starting November 1st, homes that are not considered primary residences could face up to a 50% rate increase.
Homeowners are required to provide documentation to prove their property is a primary residence, or else the higher rate will be applied upon renewal.
This could have a ripple effect, potentially resulting in higher rental prices as landlords pass on the increased costs to tenants.
